M/s. Michigan Rubber India Pvt. Ltd., Betul V. The ACIT 2(1), Bhopal

ITA 575/IND/2014

• Counselvise Citation: 57522714 RSA 2014
• Duration Of Justice: 1 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-12-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 05-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: T N UNNI; P NAMBIAR CAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO. 575/IND/2014 A.Y. : 2006-07. M/S.MICHIGAN RUBBER INDIA PVT.LTD., ACIT, 2(1), BHOPAL VS. BHOPAL APPELLANT RESPONDENT PAN NO. AAACB6100B APPELLANTS BY : SHRI T.N.UNNI AND SHRI P.NAMBIAR, CAS RESPONDENT BY : SHRI R. A. VERMA, DR O R D E R PER D.T.GARASIA, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A), BILASPUR, CAMP AT BHOPAL, DATED 31.03.20 14 FOR THE ASSESSMENT YEAR 2006-07. DATE OF HEARING : 07 . 12 .201 5 DATE OF PRONOUNCEMENT : 07 . 12 .201 5 M/S. MICHIGAN RUBBER INDIA PVT.LTD., BHOPAL VS. ACI T, 2(1), BHOPAL I.T.A.NO. 575/IND/2014 A.Y. 2006-07 2 2 2. THE SHORT FACTS OF THE CASE ARE AS UNDER. 3. THE ASSESSEE COMPANY HAS FILED THE RETURN OF INCOME AT A LOSS OF RS. 3,35,59,471/-. THE AO HAS ASSESSED THE LOSS AT RS. 2,76,37,711/- AFTER MAKING THE ADDITION OF RS.57,87,865/-, RS. 1,07,286/-, RS. 397 1/-, RS. 4871/- AND RS.17,765/- OUT OF MATERIAL CONSUMED EXPENSES, LEGAL AND PROFESSIONAL CHARGES, BOOKS AND PERIODICAL EXPENSES, AIR CRAFT EXPENSES AND BUSINES S PROMOTION EXPENSES. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE COULD NOT PRODUCE THE BILLS AND VOUCHERS O F SUCH EXPENSES ON THE PLEA THAT THESE WERE SEIZED BY CENTRAL EXCISE AND CUSTOM IN THE COURSE OF SEARCH OPERATION. THE AO COULD NOT VERIFY THE EXPENSES. THEREFORE, HE MADE ALLEGED ADDITION BY DISALLOWING 10% OF SUCH EXPENSES. 5. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT(A) HAS DISMISSED THE APPEAL. 6. THE LD. AUTHORIZED REPRESENTATIVE DURING THE COURSE OF HEARING SUBMITTED THAT THE ASSESSEE HAD M/S. MICHIGAN RUBBER INDIA PVT.LTD., BHOPAL VS. ACI T, 2(1), BHOPAL I.T.A.NO. 575/IND/2014 A.Y. 2006-07 3 3 SUBMITTED ALL THE BILLS AND VOUCHERS BEFORE THE AO. ORIGINAL BILLS AND VOUCHERS WERE PRODUCED BEFORE TH E AO, BUT THE AO DID NOT VERIFY IT AND HE HAS SIMPLY DISA LLOWED THE SAME. 7. ON THE OTHER HAND, THE LD. DR SUBMITTED THAT BOTH THE AUTHORITIES HAD SPECIFICALLY STATED THAT T HE ASSESSEE DID NOT PRODUCE THE ORIGINAL BILLS AND VOU CHERS, BUT THEY WERE NOT CERTIFIED. THEREFORE, THE DOCUMEN TS CANNOT BE VERIFIED. 8. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE ASSESSEE HAS SUBMITTED BEFOR E US THAT THEY HAVE PRODUCED ORIGINAL BILLS AND VOUCHERS FOR VERIFICATION AND ASSESSEE HAVE THESE VOUCHERS AND B ILLS. THEREFORE, WE ARE OF THE VIEW THAT THE AO IS AT LIB ERTY TO VERIFY WHETHER ALL THE BILLS AND VOUCHERS ARE ORIGI NAL OR NOT AND IF IT IS ORIGINAL BILLS AND VOUCHERS, IT IS TO BE VERIFIED AND DECIDE THE MATTER AS PER LAW. IF THE A SSESSEE FAILED TO PRODUCE THE ORIGINAL VOUCHERS AS REQUIRED BY THE AO, THEN THE AO IS AT LIBERTY TO REPEAT THE ADDITIO N BY M/S. MICHIGAN RUBBER INDIA PVT.LTD., BHOPAL VS. ACI T, 2(1), BHOPAL I.T.A.NO. 575/IND/2014 A.Y. 2006-07 4 4 PASSING A SPEAKING ORDER. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 7 TH DECEMBER, 2015. SD/- (B.C.MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 7 TH DECEMBER, 2015. CPU*